What’s Driving This Growth? The early stages of the Bank of Canada’s rate-cutting cycle are already making waves, with buyers re-entering the market after a period of caution. The combination of lower interest rates and steady home prices has improved affordability and motivated potential homeowners to take action. Why Now is a Smart Time to Buy Although market conditions tightened in October, there is still a healthy amount of inventory available, providing ample choice for buyers. This abundance of options is helping to keep home price growth moderate for now. However, as inventory begins to shrink and new construction fails to keep pace with the growing population, price growth is expected to accelerate. This could make spring 2025 a more competitive period for buyers. Policy Updates to Watch In a move to address affordability, the Toronto Regional Real Estate Board (TRREB) supports the Conservative Party of Canada’s proposal to remove the GST on new homes sold for under $1 million. This policy could provide much needed relief for new homebuyers and boost the construction of new homes, easing some of the supply issues in the GTA. Considering that average home prices in high demand areas like the GTA and Vancouver are over $1 million, a phased GST rebate of up to $1.5 million - rather than a hard cutoff at $1 million - would further assist buyers. Matching this proposal at the provincial level could amplify the benefits for those entering the market. Looking Ahead Market conditions may tighten as we move through the winter and into spring 2025, with the potential for home prices to climb as inventory is absorbed. Buyers who act now can benefit from current price stability and lower borrowing costs, making this an opportune moment to explore your options. | 
